Chain Financing Shields Foreign Backers of Opposition Media

The Nézőpont Institute has highlighted the opaque nature of foreign funding for media critical of the Hungarian government, emphasizing how this is exacerbated by the practice of chain financing. As Magyar Nemzet reports, in this system, the real sou

By: hungarytoday.hu

Jul 18 2024
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Chain Financing Shields Foreig

The Nézőpont Institute has highlighted the opaque nature of foreign funding for media critical of the Hungarian government, emphasizing how this is exacerbated by the practice of chain financing.

As Magyar Nemzet reports, in this system, the real source of the money remains largely hidden, with actual donors channeling their funding through a network of international cooperation and umbrella organizations. These organizations either provide direct financial support to media critical of the government or offer in-kind support, such as events, training, and scholarships.

The common thread among these organizations is that they are backed by the same large donors from similar political and cultural circles, according to the institute.

Picture: Facebook / Nézőpont

The report identified regular contributors, including the Open Society Foundations, the Oak Foundation, the Ford Foundation, the Sigrid Rausing Trust, and the National Endowment for Democracy. Public actors are also often among the donors. Despite the announcement that George Soros’ Open Society Foundations (OSF) would cease activities in the European Union in 2023, OSF continues to channel funds to EU member states, including Hungarian media critical of the government, using chain funding methods, the statement said.

Number of Government-Critical Media Outlets Rises Since 2010